NEWS4 August 2009

InfoGroup MR revenue down 16% to $24m in Q2

Financials North America

US— InfoGroup’s market research revenue fell 16% year-on-year to $24.7m in the second quarter of 2009, but sales were up slightly on the first three months of the year, the company revealed today.

On an organic, currency-neutral basis revenue was down 9% year-on-year in the division – which includes Opinion Research Corporation, Guideline and NWC Research. Gross margin was 38%.

Including its data and services operations, InfoGroup’s total sales for the quarter fell to 18% to $122m, while operating income plummeted 81% to $1.5m and net income fell to $600,000 from $4.3m last year.

Profit figures were affceted by $6.9m in restructuring charges related to staff severance and facility closures.

“Year to data we have recognised $8.4m of cost savings from both our first-quarter and second-quarter initiatives, which will continue through the year, as well as new initiatives in the third and fourth quarters, which will further compound our savings,” said chief financial officer Thomas Oberdorf.

Q1 research sales were down 17% to $24.5m, while group revenue also fell 17% to $127.5m. Looking to the second half of the year, CEO Bill Fairfield said: “We have begun to see a slightly positive attitude in the market place which we have not seen for the past few months.” This, he said, “gives us some pause for optimism”.

Meanwhile InfoGroup has appointed a new chairman, board member Roger Siboni, who took over from Bernard Reznicek at the end of July. Reznicek remains on the board as an independent director.